ASEAN Australia Digital Trade Issues ... - Standards Australia

Accelerating Digital Trade: Prospects for Closer ASEAN and Australia Standards Cooperation and Collaboration

An Issues Paper for the 2018 ASEAN-Australia Digital Trade Standards Workshop

September 2018

2 ASEAN-Australia Digital Trade Standards Cooperation Initiative Issues PaperSeptember 2018

Contents

List of Figures............................................................................................................ 3

Foreword ................................................................................................................... 4

ASEAN Consultative Committee for Standards and Quality ...................................... 4

Standards Australia ................................................................................................ 4

Acknowledgements ................................................................................................... 5

Introduction ............................................................................................................... 6

Executive Summary ................................................................................................ 6

Suggested Cooperation Activities for Consideration ................................................ 7

ASEAN-Australia Relationship ................................................................................. 8

Background to the Initiative .................................................................................... 9

Initiative Structure ................................................................................................ 10

Initiative Purpose .................................................................................................. 10

Context ................................................................................................................ 11

International Digital Standards Architecture ........................................................... 12

International Standards Development Organisations .............................................. 12

ISO/IEC JTC 1 .................................................................................................... 12

ASEAN-Australia Involvement in International Digital Standards .............................. 15

ISO and IEC Support for Increasing Participation ................................................... 16

ASEAN-Australia: The Current Situation ................................................................. 17

Consultation ......................................................................................................... 19

Findings ............................................................................................................... 20

Analysis ............................................................................................................... 24

Potential Future ASEAN-Australian Cooperation .................................................... 27

Potential Priority Areas ......................................................................................... 27

ISO/IEC JTC 1 Sub-Committees ........................................................................... 28

Potential Cooperation Activities ............................................................................. 30

About Standards Australia ...................................................................................... 32

Paper Contributors .................................................................................................. 32

Point of Contact Group ........................................................................................... 33

Terms....................................................................................................................... 35

Resources ............................................................................................................... 37


List of Figures

Figure 1: Key digital strengths and challenges shared by ASEAN Member States

and Australia ............................................................................................................. 6

Figure 2: Initiative Work-Flow Structure ................................................................. 10

Figure 3: ISO/IEC JTC 1 Committees and Sub-Committees ................................... 14

Figure 4: ASEAN and Australia ISO and IEC membership status ........................... 15

Figure 5: AMS and Australia network readiness index 2016................................... 18

Figure 6: ASEAN and Australia Focus Group Session Attendees ........................... 19

Figure 7: Strengths .................................................................................................. 21

Figure 8: Challenges ................................................................................................ 22

Figure 9: Opportunities ........................................................................................... 23

Figure 10: Survey Results Q18: ‘Which of the following prevent your organisation

or economy from utilising national or international standards?’ ............................ 24

Figure 11: AMS and Australian participation levels in JTC 1 Committees ............. 31


Foreword

ASEAN Consultative Committee for Standards and QualityDigital Trade is of growing importance to ASEAN. Deepening digital connectivity within ASEAN and with our key trading partners would position the region for the growing opportunities, and to be better prepared for future challenges. The importance of digital trade to ASEAN is evident with the number of ASEAN bodies looking into related initiatives. The ASEAN Coordinating Committee on e-Commerce (ACCEC) has led various initiatives, including the ASEAN Digital Integration Framework and the upcoming ASEAN Agreement on e-Commerce; The Telecommunications and Information Technology Senior Officials Meeting (TELSOM) is also developing the Digital Data Governance at ASEAN to add to its ASEAN Framework on Personal Data Protection (2016), which recognised the importance of strengthening personal data protection.

Recognising the key role that international digital trade standards play as a key enabler to facilitate economic growth and security, ACCSQ welcomes the ASEAN-Australia Digital Trade Standards Cooperation Initiative as a key cornerstone to ASEAN’s growth in this area and affirms the importance of Australia as a collaboration partner. This issues paper serves the important purpose of initiating the conversation between ASEAN and Australia on facilitating cross border trade via standards, technical regulations and conformity assessment procedure initiatives. ASEAN is heartened by the opportunity to collaborate with a like-minded partner and look forward to more fruitful discussions ahead.

Standards AustraliaStandards Australia is proud to be working with our ASEAN counterparts on this exciting digital trade initiative. This is the first time we have explored the issues, opportunities and challenges associated with digital trade and international standards harmonisation. The intention of this Issues Paper is to outline the findings, to date, based on extensive consultation and collaboration between our National Standards Body partners across the region. ASEAN and Australia have much to learn from each other; and this partnership will build the region’s standing in the global digital economy through enhanced standards harmonisation and trade. A possible long term work program has the potential to forge even closer economic ties between ASEAN and Australia in the future.

Singapore Focus Group Session, 18 May 2018


Acknowledgements

This Issues Paper was commissioned as part of the ASEAN-Australia Digital Trade Standards Cooperation Initiative. Its production would not have been possible without the commitment of ASEAN National Standards Body (NSB) counterparts who have generously worked together with Standards Australia to contribute to the production and review of this jointly developed Paper.

Special thanks are also due to NSB stakeholders, survey respondents and Focus Group Session participants from across ASEAN and Australia who have provided market insights, national perspectives and constructive feedback. Focus Group sessions were held respectively in Cambodia, Viet Nam, Lao PDR, Myanmar, Philippines, Brunei Darussalam, Indonesia, Malaysia, Singapore and Australia with participants drawn from government, regulators, business, trade promotion organisations, and other civil society organisations.

Financial support for this Initiative was provided from the Australian Government – Department of Foreign Affairs and Trade and Department of Industry, Innovation and Science.

Lao PDR Focus Group Session, 2 February 2018


Introduction

Executive SummaryDigital trade presents a new wave of opportunity for further globalisation and regional prosperity for ASEAN Member States (AMS) and Australia. It has the far-reaching potential to touch all aspects of the global economy, from agriculture to manufacturing, telecommunications, and service-based industries. In order for ASEAN and Australia to reap the benefits of newly developed industries and emerging technologies, harmonisation based on market-relevant international standards is critical. Harmonisation is achieved when two or more states adopt the same standards for use in their economies.

In digital trade, international standards play a critical role in facilitating interoperability, consumer trust and market confidence. This is increasingly important given the rapid pace of digital developments and the capacity for digital technologies to impact all facets of the economy. For over a quarter of a century, ISO/IEC JTC 1 has been critical in shaping and influencing the international Information Communications and Technologies (ICT) and digital trade environments by supporting the development, application and deployment of existing and new technologies worldwide. ASEAN and Australian participation in the development, adoption and use of international standards developed by JTC 1 Sub-Committees is essential for promoting standards harmonisation, technical alignment and regulatory cooperation. Through increased harmonisation, ASEAN and Australia have the opportunity to better develop an inclusive regional digital ecosystem and gain strategic and competitive benefits from deeper engagement in the global digital economy.

This Initiative has engaged with stakeholders across ASEAN and Australia to determine some key strengths which act as enablers, and challenges which present barriers, to digital economic growth and enhanced digital trade. Common strengths have the potential to facilitate future cooperation in international digital standardisation and digital integration, while the shared challenges may require institutional strengthening and regulatory changes.

All AMS and Australia similarly have their unique competitive advantages and challenges and each economy requires a different path of development for the future.

Figure 1: Key digital strengths and challenges shared by ASEAN Member States and Australia

Strengths Challenges

• Digitallyliterate,youngmotivatedpopulations

• Highinternetandmobilephonepenetration

• Strongusageofsocialmedia,networkingplatformsandcommondigitaltechnologies

• Supportive,activegovernmentspromotingthedigitaltransformation

• Consumersandbusinessdrivingdigitaldevelopment

• Appetiteforbuildingdigitalknowledgeandsharingofexperiences

• Variedlevelsofdevelopment,adoptionanduseofinternationaldigitalstandards

• Confidenceincoreinstitutions;financial,regulatory,multinationalcorporations

• Transitioningfromcash-basedtoprimarilydigitalpaymentbasedeconomies

• Dataprotectionandinformationsecurity

• Cybersecurityandcybercrime

• Reliabilityofinternet/telecommunicationsinfrastructure


As a fundamental economic enabler, digital technologies require reliable infrastructure and services to support successful implementation. International ICT standards are one of the foundational elements of the digital economy. Further, harmonised standards across borders support and enable increased digital trade. International standards provide a global solution that enables interoperability across different products and services from different technology suppliers. This paper explores the issues that are shared and unique in AMS and Australia in digital trade. It makes some suggestions for potential future cooperative initiatives that could raise market awareness, increase standards harmonisation, and strengthen levels of development, adoption and implementation of international digital standards. The Paper is not comprehensive nor intended to be prescriptive and will be used to trigger and encourage discussion among stakeholders at the two-day Digital Trade Standards Workshop to be held in Sydney on 16 –17 October 2018.

Suggested Cooperation Activities for Consideration

• Use the Digital Trade Standards Workshop as an opportunity to facilitate a discussion that may enable the identification of priority ISO and IEC digital technical committees, including the crucial international digital standards that fall within their scope.

• Use the Digital Trade Standards Workshop to identify potential methods and activities of cooperation between AMS and Australia to support greater participation, adoption and use of international digital standards.

• Determine how potential future cooperation activities could align with and strengthen the draft ASEAN E-commerce Agreement.

• Determine how the ISO and IEC membership status of AMS could be addressed in order to enable some member states to increase their participation in standards setting activities.

• Determine how AMS and Australia could establish a platform and process for sharing of case studies, experiences and lessons learned from their own domestic context to share with the rest of the region.


ASEAN-Australia Relationship

ASEAN and Australia are home to a market opportunity of 661.2 million consumers, in one of the most dynamic and fastest growing regions in the world.1

Australia became a dialogue partner to ASEAN in 1974, the first of ten countries to do so. The relationship was further strengthened in 2014 when ASEAN and Australia entered into a Strategic Partnership and in 2015 when the two agreed to commence biennial leaders’ summits. The Plan of Action to implement the ASEAN-Australia Strategic Partnership was adopted in 2015, and prioritises a number of objectives for the Partnership:

• political and security cooperation;• economic cooperation;• socio-cultural cooperation;• connectivity; and• ASEAN institutional strengthening.2

The Plan of Action has enabled ASEAN and Australia to continue valuable political dialogue and collaborate in order to meet goals for mutual benefit.

ASEAN-Australia economic cooperation has grown through the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which came into effect in early 2010. AANZFTA has enabled business of all sizes to utilise the available benefits of the agreement and encouraged prosperous and inclusive economic growth across the region. Under AANZFTA, the trade relationship has expanded, with two-way trade amounting to over $101 billion in 2016-17 alone.3

Malaysian Focus Group Session, 17 May 2018

1 Based on 2016 available data sourced from DFAT Country and Regional Data Sheets accessed on 13 April 2018.

2 Plan of Action to Implement the ASEAN-Australia Strategic Partnership, ASEAN-Australia Plan Of Action, http://asean.org/storage/images/2015/November/ASEAN-Australia/ASEAN-Australia%20Strategic%20Partnership%20POA%202015-2019-Final.pdf

3 Department of Foreign Affairs and Trade Australia, ‘Association of Southeast Asian Nations’ available online at: http://dfat.gov.au/international-relations/regional-architecture/asean/Pages/association-of-southeast-asian-nations-asean.aspx

http://dfat.gov.au/trade/resources/Documents/aust.pdf

http://dfat.gov.au/trade/resources/Documents/asean.pdf

http://asean.org/storage/images/2015/November/ASEAN-Australia/ASEAN-Australia%20Strategic%20Partnership%20POA%202015-2019-Final.pdf


http://dfat.gov.au/international-relations/regional-architecture/asean/Pages/association-of-southeast-asian-nations-asean.aspx



Background to the InitiativeThe ASEAN-Australia Digital Trade Standards Initiative was announced at the ASEAN-Australia Special Summit, held in Sydney in March 2018. The Special Summit was the first time Australia has hosted ASEAN leaders as a group and marked a new era in the ASEAN-Australia strategic partnership.

The former Australian Prime Minister, the Hon. Malcolm Turnbull, announced the initiative at the Special Summit alongside 14 others initiatives, all aimed at expanding bilateral political and economic linkages between ASEAN and Australia and strengthening ASEAN-Australia’s contribution to regional security and prosperity.

The initiative aims to identify potential collaboration opportunities for the medium to longer term between AMS and Australia. It is anticipated that the results of this early exploratory initiative may be used to help inform a longer term project to promote digital trade and feed into the development of core areas for consideration as part of an ASEAN-Australia Digital Trade Standards Cooperation Framework.

On the ASEAN front, the development of the ASEAN-Australia Digital Trade Standards Cooperation Initiative is being overseen by the ASEAN Consultative Committee on Standards and Quality (ACCSQ) and the ASEAN Coordinating Committee on e-Commerce (ACCEC). Advice on the initiative has also been received from the Point of Contact Reference Group (POC), which includes representatives from each AMS, the ASEAN Secretariat (ASEC), Australian Department of Foreign Affairs and Trade (DFAT), Australian Department of Industry, Innovation and Science (DIIS) and Standards Australia.

ASEAN and Australian leaders at the Special Summit in Sydney, March 2018


Initiative StructureThe Initiative is utilising a collaborative and cooperative approach between all ASEAN Member States and Australia, facilitated by coordination work from Standards Australia and the ASEAN Secretariat. The core project activities include a Digital Trade Standards Survey; Focus Group Sessions; publication of an Issues Paper; a two-day Digital Trade Standards Workshop and a final Recommendations Report, to be supported and endorsed by all parties. The structure of the Initiative is indicated in the figure below.

Figure 2: Initiative Work-Flow Structure

ASEAN-Australia Digital Trade Survey

AMS and Australia Focus Group Sessions9

Issues Paper9

Two-day Digital Trade Standards Workshop9

Recommendations Report and potential Framework9

Initiative PurposeDigital trade presents a new wave of opportunity for further globalisation and regional prosperity for AMS and Australia. It has the far-reaching potential to touch all aspects of the global economy, from agriculture to manufacturing, telecommunications, and service-based industries. In order for ASEAN and Australia to reap the benefits of newly developed industries and emerging technologies, harmonisation of market-relevant international standards is critical.

This initiative seeks to raise awareness of the role of International Standards, and address key issues that both enable and inhibit digital trade across ASEAN and Australia and beyond. The inhibitors that were identified as possible priorities by Australia and AMS at the inception of this Initiative were:

• uneven participation in the development of international digital standards and adoption of best practices;

• lack of uptake, adoption and use by states and industry of international standards;• inconsistencies in digital standards, policy, regulations and governance across

economies;• knowledge and participation gaps, particularly in ASEAN’s Least Developed

Member States.


ContextASEAN is not a monolithic entity, but a collage of different cultures and economies at varying stages of economic development. Currently, each AMS and Australia operates very differently in their ability to utilise their National Quality Infrastructure (NQI), engage in the growing digital economy and benefit from international digital standards. The NQI is the institutional framework that establishes and implements the practice of standardisation, including conformity assessment services, metrology, and accreditation.4

Digital technologies have spread rapidly in much of the world, and are seen as enablers of development. However, the full potential of digitisation has not yet permeated all the AMS or Australia.

The United Nation’s 2030 Agenda for Sustainable Development recognises that digital connectivity plays a fundamental role in fostering development, reducing the digital divide, and is a critical enabler to achieve the UN’s Sustainable Development Goals (SDGs). A number of SDGs explicitly specify targets for the use of ICT to promote sustainable development in areas such as education (Goal 4), gender equality (Goal 5), infrastructure (Goal 9) and partnerships and means of implementation (Goal 17).

To get the most out of the digital revolution, countries also need to work on strengthening regulations that ensure transparent and competitive markets. This is of particular importance within the context of ASEAN which is comprised of highly developed, middle income and some of the least developed economies in the world. In such a context, it’s worth noting that the United Nations Conference on Trade and Development (UNCTAD) in a very recent policy brief, articulated the urgent need to invest more international resources to support developing countries in upscaling their readiness to both engage in and directly benefit from e-commerce. The potential future paths of development and economic growth will therefore be different for each AMS and Australia as they vary in their needs, strategic priorities, strengths and challenges.

Stakeholders at the Brunei Darussalam Focus Group Session, 14 May 2018

4 World Bank, 2013, ‘The Innovation Policy Platform’, available at: https://innovationpolicyplatform.org/sites/default/files/rdf_imported_documents/TheNationalQualityInfrastructure.pdf

https://innovationpolicyplatform.org/sites/default/files/rdf_imported_documents/TheNationalQualityInfrastructure.pdf



International Digital Standards Architecture

International Standards Development OrganisationsThe international standards and conformance system comprises three principal global SDOs:

• International Organization for Standardization (ISO);• International Electrotechnical Commission (IEC); and• International Telecommunication Union (ITU).

Together, ISO and IEC are the key non-governmental bodies that develop voluntary international standards, while the ITU is a treaty organisation which develops Recommendations (i.e. Standards) in the area of telecommunications and related technologies.5 The Institute of Electrical and Electronics Engineers (IEEE) also develops standards of relevance in this space.

While this Initiative has asked stakeholders to broadly consider all international digital standards from a strategic standpoint, the focus is primarily on voluntary consensus based ISO/IEC JTC 1 standards. As such, discussion concentrates on ISO and IEC roles and activities, noting that ITU is also actively involved in supporting digital trade.

The ISO and IEC are both member-based bodies that consist of National Standards Bodies each representing member countries and operating on a fundamental one member – one vote policy. The ISO and IEC offer progressive membership levels in order to accommodate the different availabilities of resources that countries may be able to allocate to their standards participation.

Currently, ISO has 161 NSB members. NSBs can either engage as a Full Member, Correspondent Member or as a Subscriber Member. Full Members have the opportunity to participate in all standards development processes and influence strategy and policy by voting at international meetings. Correspondent Members are limited in their ability to engage in international development processes by attending technical committee and policy meetings as observers, while Subscriber Members are kept up to date on ISO’s work but cannot directly participate in it.6

The IEC has 85 National Committee (NC) members across the world with a similar one vote and one member per country policy. The IEC has three levels of membership status: Full Member, Associate Member and Affiliate Member. Full Members, through their respective NC, have access to all technical, managerial activities and functions, at all levels of the IEC, including voting rights in council. Associate members operate through their NCs having full access to all working documents but have limited voting rights in the technical work and no eligibility to participate in governance functions. Affiliate Members are supported through a program for developing countries which enables their participation without the resource burden of full membership.

ISO/IEC JTC 1

A majority of the ISO and IEC digital trade enabling standards are developed by the Joint ISO and IEC Technical Committee on Information Technology, known as ISO/IEC

5 Recommendations are essentially standards defining how telecommunication networks operate and interwork. Readers need to be aware that Recommendations have non-mandatory status until they are adopted in national laws.

6 Further information on ISO membership categories can be found here https://www.iso.org/members.html and there is also a member’s information portal. It is also worth noting that correspondent members can sell and adopt ISO International Standards nationally while subscriber members are not able to do so.

https://www.iso.org/home.html

http://www.iec.ch/

https://www.itu.int/en/Pages/default.aspx

https://www.iso.org/members.html


JTC 1. JTC 1 has been critical in shaping and influencing the international ICT and digital trade environments by supporting the development, application and deployment of existing and new technologies worldwide.

This entity was formed in 1987 to provide a single, comprehensive standardisation committee in which to address international Information Technology (IT) standardisation. JTC 1 brings together technical experts from across the world to develop standards in the field of IT and Information and Communications Technology (ICT).

Most of the work of ISO/IEC JTC 1 takes place through Sub-Committees of which there are currently 22. To date, 3,160 ISO/IEC standards have been published by SCs in JTC 1, involving 4,500 registered technical experts from around the world. Figure 3 shows the breadth of topics of the international digital standards developed under JTC 1.

ICT standards cover a vast range of subject areas including the specification and design of systems and tools, to the management, organisation, security, storage and transfer of data and information. The standards are applicable to government, business and consumers.

As can be seen from Figure 3, international digital standards developed under JTC 1 cover extensive topic areas, in support of the complex and rapidly growing state of the digital economy. Many of the standards published by the JTC 1 parent committee and its 22 SCs are essential for providing the foundational requirements to facilitate digital trade. Standards cover ICT products, systems, platforms and information management in key areas such as:

• IT service and product management;• IT governance;• IT security techniques;• Cross-border data flows and data sharing; and• Relatively new areas such as cloud computing, Internet of Things and artificial

intelligence.

Working Groups (WGs) are established to conduct research into emerging fields of IT and determine the potential role of International Standards in the deployment of these technologies. When a field of technology has further matured, a WG may become an active Sub-Committee of JTC 1 and produce international standards in the sector. Examples of current WG activities include 3D Printing and Scanning, Emerging Technologies and Innovations, Big Data, and Smart Cities.

Thailand Focus Group Session, 7 March 2018

https://www.iso.org/committee/45020.html


Figure 3: ISO/IEC JTC 1 Committees and Sub-Committees

Committee Designation Committee Title

No. of standards published

ISO/IECJTC1 InformationTechnology 501

ISO/IECJTC1/SC2 Codedcharactersets 53

ISO/IECJTC1/SC6 Telecommunicationsandinformationexchangebetweensystems 380

ISO/IECJTC1/SC7 Softwareandsystemsengineering 179

ISO/IECJTC1/SC17 Cardsandsecuritydevicesforpersonalidentification 114

ISO/IECJTC1/SC22 Programminglanguages,theirenvironmentsandsystemsoftwareinterfaces

114

ISO/IECJTC1/SC23 DigitallyRecordedMediaforInformationInterchangeandStorage

138

ISO/IECJTC1/SC24 Computergraphics,imageprocessingandenvironmentaldatarepresentation

79

ISO/IECJTC1/SC25 Interconnectionofinformationtechnologyequipment 211

ISO/IECJTC1/SC27 ITSecuritytechniques 178

ISO/IECJTC1/SC28 Officeequipment 48

ISO/IECJTC1/SC29 Codingofaudio,picture,multimediaandhypermediainformation 588

ISO/IECJTC1/SC31 Automaticidentificationanddatacapturetechniques 118

ISO/IECJTC1/SC32 Datamanagementandinterchange 77

ISO/IECJTC1/SC34 Documentdescriptionandprocessinglanguages 81

ISO/IECJTC1/SC35 Userinterfaces 70

ISO/IECJTC1/SC36 Informationtechnologyforlearning,educationandtraining 39

ISO/IECJTC1/SC37 Biometrics 121

ISO/IECJTC1/SC38 CloudComputingandDistributedPlatforms 13

ISO/IECJTC1/SC39 SustainabilityforandbyInformationTechnology 18

ISO/IECJTC1/SC40 ITServiceManagementandITGovernance 23

ISO/IECJTC1/SC41 InternetofThingsandrelatedtechnologies 15

ISO/IECJTC1/SC42 Artificialintelligence 2

Viet Nam Focus Group Session, 27 February 2018


ASEAN-Australia Involvement in International Digital StandardsStandards harmonisation is supported and strengthened when countries prioritise the development, adoption and use of international standards, rather than developing national standards which may potentially be conflicting or indeed trade restrictive. On the ASEAN front, ACCSQ encourages alignment to international standards, wherever international standards exist. On some occasions, national standards development is required in order to address issues that are unique to the domestic environment. In all other circumstances, NSBs provide support and enable their national stakeholders to participate and engage in international standards development processes.

The ability to participate and contribute to the development process is dependent on a country’s membership of international standards development organisations and participation levels in international technical committees. The important point to underscore is that by participating in ISO/IEC everyone has an opportunity to shape, not just adopt the standards. Participation is critical to ensure that international standards developed by ISO/IEC JTC 1 are suitable for use by ASEAN and Australian economies.

All AMS and Australia are currently members of the ISO and IEC, however, their membership levels vary significantly. The membership status of AMS and Australia at ISO and IEC are outlined in Figure 4 below. The states that do not engage as Full Members have restrictions on their ability to participate in the governance structures of the international SDOs and also in the standards development processes. These limitations may prevent states from putting forward their unique country perspectives into international standards development, including the specific needs of consumers, markets and their regulatory environment. The implication of this reduced participation is that any particular AMS may find that international standards are not valid for their domestic conditions and are therefore not suitable for adoption.

Figure 4: ASEAN and Australia ISO and IEC membership status

Country

Australia(SA) Fullmember Fullmember

Indonesia(BSN) Fullmember Fullmember

Malaysia(DSM) Fullmember Fullmember

Philippines(BPS) Fullmember Fullmember

Singapore(ESG) Fullmember Fullmember

Thailand(TISI) Fullmember Fullmember

VietNam(STAMEQ) Fullmember Associatemember

Brunei(NSC) Correspondentmember Affiliatecountrymember

Cambodia(ISC) Correspondentmember Affiliatecountrymember

LaoPDR(DOSM) Correspondentmember Affiliatecountrymember

Myanmar(DRI) Correspondentmember Affiliatecountrymember


States in the region that are not adopting international standards may find that their potential bilateral and multilateral trading opportunities are hampered, as the goods and services that they produce might not meet the same fundamental standards that are expected by their trading partners. Without direct participation, stakeholders may also be restricted from engaging in their fields of expertise to share national and regional specific knowledge and environmental considerations, and will also miss the opportunity to gain insights about global trends, best practices and activities. International standards have the potential to lose relevance for states and regions if the positions of their national industries and stakeholders are not included in the full standards development process.

The participation levels may vary across the region due to differing availability of financial resources to support participation, differing availability of technical expertise to contribute to standards development, differing availability of knowledge in the standards development processes, and a mismatch in priority sectors between national economies and international standards development committees.

ISO and IEC Support for Increasing ParticipationISO invests considerable resources to support Developing Countries (DCs) and LDCs through its Developing Country Policy Committee (DEVCO). It also has a rolling Action Plan for Developing Countries (APDC: 2016-2020) which can be leveraged by members to support the engagement of NSBs. In addition, ISO has established the Regional Engagement Initiative in Singapore to support and service members’ needs across the Asia-Pacific region. Similarly, IEC has an IEC Asia-Pacific Regional Centre (IEC APRC) located in Singapore and provides support to DC and LDCs through its Affiliate Country Program. This program is targeted to newly industrialised countries and is designed to give them an exposure to IEC’s global work. Furthermore, JTC 1 has identified in its annual plan that it will develop an Outreach Plan that targets developing countries and highlights new and important areas of standardisation that can be tailored for specific developing countries to discuss adoption of standards and/or participation in JTC 1 activities.

Cambodia Focus Group Session, 27 February 2018

https://www.iso.org/publication/PUB100374.html

https://www.iso.org/publication/PUB100374.html

http://www.iec.ch/affiliates/?ref=menu

http://www.iec.ch/affiliates/?ref=menu


ASEAN-Australia: The Current Situation

The ASEAN ICT Master Plan 2016-2020 is focussed on a horizontal, economy wide transformation wherein the internet and digital technologies increasingly become a core part of the economy and foster growth and innovation. Its five key themes include:

• An accessible, inclusive and affordable digital economy: ICT will be used to support digital inclusion of communities across the region.

• Deployment of next generation ICT as an enabler of growth.• Sustainable development through smart city technologies.• ICT supporting a single regional market to facilitate integration and lower

business costs.• Secure digital marketplaces and safe online communities to facilitate and

promote regional digital trade.7

These themes are indicative of the exceptional pace at which technological and economic change is occurring across ASEAN, Australia and beyond. Progress in the digital sphere is an enabler of business growth and trade across all sectors, not simply ICT, and presents a new challenge of economy-wide digital transformation. In many respects, a dichotomy between a digital economy and a national economy no longer exists: there is simply one economy in which the digital infrastructure is playing an increasingly critical role. Examples can be found in the building and construction sector that is exploiting new technologies such as building information modelling, or in electotechnology, which is increasingly deploying sensors to capture and transmit data to improve energy efficiency, increasing the output of food crops and reducing our carbon footprint.

AMS and Australia have a strategic geopolitical advantage for engaging directly in the global digital economy to attain competitive advantage and immersion in global value chains, supported by accessible shipping ports and established manufacturing markets. In the ASEAN Australia Digital Trade Survey, an Australian stakeholder specified the importance of digital trade by saying

‘The first countries to link international trade platforms will generate major competitive advantages. Not only will their country’s exporters face significantly reduced trade costs, but supply will be faster, smoother and more dependable. In addition, there will be enhanced confidence in a seller’s ability to deliver, creating competitive advantages.’

7 ASEAN ICT Masterplan 2020, available at: http://www.asean.org/storage/images/2015/November/ICT/15b%20--%20AIM%202020_Publication_Final.pdf

http://www.asean.org/storage/images/2015/November/ICT/15b%20--%20AIM%202020_Publication_Final.pdf



Research indicates that while ‘ASEAN (as a single community) lags behind its global peers in the digital economy, it has the potential to enter the top five digital economies in the world by 2025.’8 The least developed countries (LDCs) of the AMS have the opportunity to leapfrog the digital development of their neighbours by learning from the experiences of others and adopting and implementing the most recent and beneficial technologies.

The World Economic Forum classified states into a Networked Readiness Index to rank their current digital readiness as shown in Figure 5 below. This figure demonstrates the current digital disparity among AMS and Australia, and also highlights the opportune environment for growth and development.

Figure 5: AMS and Australia network readiness index 20169

Rank Country/Economy

1 Singapore

18 Australia

31 Malaysia

62 Thailand

73 Indonesia

77 Philippines

79 VietNam

104 LaoPDR

109 Cambodia

133 Myanmar

Indonesian Focus Group Session, 15 May 2018

8 The ASEAN Digital Revolution, AT Kearney, inc, 2015, pg. 1.9 Results for Brunei Darussalam are not available for this study.

https://www.atkearney.com/documents/10192/7567195/ASEAN+Digital+Revolution.pdf/86c51659-c7fb-4bc5-b6e1-22be3d801ad2


ConsultationThe stakeholders of ASEAN and Australia have been widely consulted and included in the process of identifying the primary digital and standards related issues across the ASEAN and Australian region. Research and analysis for the Initiative was conducted through 3 primary methods; a survey, focus group sessions; and desktop research.

The Survey of Australian and ASEAN digital trade was opened online on 6 February 2018 and closed on 25 May 2018. The Survey timeline was extended to allow for greater participation from stakeholders across ASEAN and Australia and to align with the completion of the Focus Group Sessions. The Survey attracted 116 responses from stakeholders representing all ten AMS and Australia. 48% of the responses received were from Government and public service stakeholders and in total, 76 surveys were completed by males and 40 by females. The Survey focussed on collecting data on the stakeholder’s perception of their national digital economy. It asked questions on:

• Challenges in the digital economy;• Areas of priority in the digital economy;• Uptake of new and emerging digital technologies;• The awareness and use of international standards;• Considerations for gender and disadvantaged groups;• Potential future cooperative activities; and• Education programs and national priorities and policies.

It also asked stakeholders to indicate their support for future ASEAN-Australia cooperation in international standards and the digital sphere, of which 84% of respondents said their organisation or economy would benefit from potential future standards harmonisation, technical alignment and regulatory coherence.

To support the information collection of the Survey, Focus Group Sessions were conducted in each AMS and Australia, with key digital stakeholders representing government agencies, regulatory bodies, customs offices, academia, trade promotion agencies, multinational corporations, start-ups, telecommunications bodies and civil society. The Sessions provided 25-40 public and private stakeholders with the opportunity to come together for thought-provoking discussions and awareness building about the current digital situation in their economy including strengths, challenges and opportunities, and considerations for the role of international standards in supporting digital trade. Desktop research was also conducted to provide foundational knowledge and information for informing this Issues Paper.

Figure 6: ASEAN and Australia Focus Group Session Attendees

Country National Standards Body Number of Attendees

Australia StandardsAustralia(SA) 24attendees

BruneiDarussalam NationalStandardsCentre(NSC) Approx.25attendees

Cambodia InstituteofStandardsofCambodia(ISC) 31attendees

Indonesia BadanStandardisasiNasional(BSN) 24attendees

LaoPDR DepartmentofStandardizationandMetrology(DOSM) 31attendees

Malaysia DepartmentofStandardsMalaysia(DSM) 27attendees

Myanmar DepartmentofResearchandInnovation(DRI) 36attendees

Philippines BureauofPhilippineStandards(BPS) Approx.25-30attendees

Singapore EnterpriseSingapore(ESG) Approx.30attendees

Thailand ThaiIndustrialStandardsInstitute(TISI) 29attendees

VietNam DirectorateforStandards,MetrologyandQuality(STAMEQ) 34attendees


The Focus Group Sessions enabled stakeholders to break into smaller groups for discussion in order to answer questions about key stakeholders, key strengths, challenges and opportunities, key changes required for the digital future, knowledge of international standards, priority sectors and potential activities for cooperation and collaboration in the future. The strengths, challenges and weaknesses which were most commonly raised throughout the region (by 7 or more states) have been highlighted yellow in the figures 7, 8 and 9 below.

FindingsFigures 7, 8 and 9 present the key strengths, challenges and opportunities for digital trade that were identified by AMS and Australia at the Focus Group Sessions. The ‘•’ symbol indicates states where the strength, challenge or opportunity was identified by stakeholders.

Evidently, there are some strengths and challenges that are shared by all economies throughout the region. There are also some strengths, challenges and opportunities which are unique to each AMS or Australia. The individuality of the digital environment in each state means that the approach for progression of the digital sector and digital trade, in addition to engagement in international standards, will be different for each country. The strengths shared across the region can be used as enablers for future growth and for potential future cooperation activities. The challenges shared by a number of countries must be addressed and considered in their ability to impact future engagement and cooperation, however, some factors are unable to be addressed by standardisation practices alone and require institutional development as well as external funding. The shared opportunities can be tapped into in order to create the grounds for motivation for engagement in greater digitisation and enhanced digital trade, supported by harmonisation of international standards.

Myanmar Focus Group Session, 5 March 2018


Figure 7: Strengths

Bru

nei

Cam

bodi

a

Indo

nesi

a

Lao

PD

R

Mal

aysi

a

Mya

nmar

Phi

lippi

nes

Sin

gapo

re

Thai

land

Vie

t N

am

Aus

tral

ia

Young,motivatedpopulation • • • • • •

Largepopulation • • • •

Highinternetpenetration • • • • • • • • • • •

Highmobile(smart)phonepenetration • • • • • • • • • • •

Strongdigitalliteracyofcommondigitalproductsandplatforms

• • • • • • • • • • •

Highusageofsocialmediaandnetworkingplatforms • • • • • • • • •

Governmentsupportiveanddrivingthedigitalagenda • • • • • • • • •

Businessisopenandwillingtoreceivedadviceandguidance • • • • •

Supportiveenvironmentsforstart-upcompanies • • • •

Fintechfastgrowingsector • • • •

Consumersdrivinggreaterdigitisation • • • • • • •

Well-coordinatedhorizontalandverticalapproachacrosseconomy

•

Coordinatedapproachbetweengovernmentandindustry •

Highbusinesscompliancewithgoverninglawsandpolicies •

Strongengagementandleadershipininternationalstandardsdevelopment

• • •

IPandownershiplawsstrongandreliable • •

Highnumberoftechnicalexperts • • •

Leadershipinemergingtechnologicalareas • •

Strongconsumerrightsandconsumerprotectionestablished • •

Strongeducationpillars • •

Key

Areaofcommonstrength •strengthidentifiedbystakeholders


Figure 8: Challenges

Bru

nei

Cam

bodi

a

Indo

nesi

a

Lao

PD

R

Mal

aysi

a

Mya

nmar

Phi

lippi

nes

Sin

gapo

re

Thai

land

Vie

t N

am

Aus

tral

ia

ConfidenceoftrustininstitutionsFinancial/Government/Multinational

• • • •

Postalservicescanbeunreliable • • • • •

Cash-basedeconomies,notyettransitionedtoprimarilydigitalpaymentsystems

• • • • • • • •

Needforestablishedandreliableonlinedigitalpaymentplatforms

• • •

Greatergovernmentagencyandindustrycoordinationneeded • • • • • •

Dataprotection/sharingandinformationsecurityiskeychallenge

• • • • • • • • •

Lackoftechnicalexpertiseinadvanceddigitaltechnologies-unabletoleadinternationalwork

• • • • • • •

Mismatchbetweenskillsandworkforceandjobsavailable/needed

• • • • •

Languagebarriersforengagementininternationalstandardisation

• •

Limitedabilitytovoicenationalperspectiveininternationalstandards

• • • •

Establisheddigitalpolicyandgovernanceapproachneedsgreaterimplementation

• • • •

Cybersecuritythreats,costlyandmayreduceinvestorattraction

• • • • • • •

Needforincreasedconsumerprotectionforonlineservices • • • •

Smalleconomy,canmovequicklybutissusceptibletointernationalforces

•

Neighbouringandregionalpoliciesneedtomirrordomesticpolicies

• •

Datalocalisationpoliciesinregioncanpreventopportunitiesforbusinessinvestmentandeconomicgrowth

• • •

Unreliableandexpensiveinternetinfrastructure • • • • •

Digitalgapbetweensocioeconomicdivisionsinsociety • • • •

Lackofclearestablishedgovernmentapproachfordigitalsector

• •

Debatebetweenprotectionismvsopenandcompetitivemarkets

•

Key

Areaofcommonchallenge •Challengeidentifiedbystakeholders


Figure 9: Opportunities

Bru

nei

Cam

bodi

a

Indo

nesi

a

Lao

PD

R

Mal

aysi

a

Mya

nmar

Phi

lippi

nes

Sin

gapo

re

Thai

land

Vie

t N

am

Aus

tral

ia

PotentialforsignificantknowledgetransferbetweenAMSandAustralia

• • • • • • •

UtiliseAAexperiencesandknowledgetoleapfrogdigitaldevelopment

• • •

Increasingsocialdemandfordigitaldevelopment • • • • •

Utiliseincreasingpublicandprivatesectorcommunicationandalignment

• • • • •

Enhanceddigitisationforincreasedintegrationintoglobalvaluechains

• • • •

Opportunitytoincreasetechnicalexpertiseandknowledgesharinginemergingfieldsoftechnology

• • • •

Digital,asanenabler,canhelptoaddresstherural-urbandivide

• • • • • • • •

Digital,asanenabler,cantakedomesticmarketsinternational • • •

Educationandawarenessbuildingcanbenefitsupplychainsanddigitalsector

• • • • • • • •

Cashtocardtransitioncantriggerdevelopmentofinnovativenewtechnologies

• •

Governmentsupportprovidesgrowthandinvestmentopportunities

• • • •

Fast-pacedandintegratedmarketspresentnewinvestmentopportunities

•

Stronginterestinincreasingknowledgeandtechnicalexpertiseofemergingfieldsoftechnology

• • • • • •

Potentialtousedigitaltoupskillacrossallsectors • • • •

Developprogramsforaccessibilityfordisadvantagedgroups • • • • • •

Digitalcanaddressinternationalgeographicchallenges •

Digitalasaneconomicgrowthcontributor • • • •

Increasinguniversity/industry/governmentcollaboration • •

Unknowndigitalframeworkpresentsopportunitytolearnfromothers

• • •

Trustworthinessreputationbringsinvestmentopportunities • •

AAcooperationforgreaterinternationalstandardsengagement

• • • • •

OpportunityforAMSandAustraliatoshareknowledgeandexperiencesforcollectiveregionaldevelopment

• • • • • • • • • • •

Key

Areaofcommonopportunity •Opportunityidentifiedbystakeholders


Figure 10: Survey Results Q18: ‘Which of the following prevent your organisation or economy from utilising national or international standards?’

AnalysisThe fundamental findings across the information collection in the Survey and Focus Group Sessions (FGS), is that there is a need to:

• build market awareness and increase stakeholder knowledge of international standards and their processes;

• educate stakeholders on the role that international standards have in supporting the digital economy and enabling trade; and

• ensure that technical experts are given the necessary support to engage and participate in international standardisation processes.

Over 50% of survey respondents indicated that lack of awareness prevented their organisation or economies from greater standards utilisation. This theme was supported in the FGS, where seven states, Brunei Darussalam, Cambodia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand and Viet Nam, identified that increased education and raising awareness of the digital sector and of international standards would benefit and strengthen supply chains throughout the economy.

Strengths

The most common strengths identified across the region have the capability of supporting enhanced capacity in the digital sector and enabling increased digital trade by and between AMS and Australia. High internet penetration, high mobile (smart) phone penetration, and a strong digital literacy of common digital goods and services are recognised as positive attributes among all ten AMS and Australia. However, ASEAN and Australian stakeholders noted that the reliability of the internet and telecommunications infrastructure to support this connectivity does vary considerably across the region.

The commonly shared strengths of high mobile phone usage, extensive internet access and digital literacy, can mobilise populations to enable greater engagement in the digital economy. Consumers are in a position to increase demand through ease of access and businesses are also able to reach greater efficiencies through improved accessibility.

The high number of social media users, e.g. Facebook, supports digital integration by providing businesses such as SMEs with a platform to take their domestic business internationally, with reduced entry and transaction costs and easy access to overseas mass markets.

The other two most commonly arising themes were: strong government support – providing policy and regulatory support for a stronger digital economy and increased digital trade, as well as potential funding providers for increased activities; and the


consumer drive for digitisation. These elements were not shared by all ten AMS and Australia. In Australia, for example, digitisation is strongly driven by innovation and activity from industry rather than by Government agenda. Alternatively, in Thailand, it was discussed that the Government is prioritising the availability of quality internet services across rural and urban areas, yet even with this strong supply, there is a lack of uptake of digital products and services from consumers. The remaining AMS also have different drivers for digital transformation, coming from either the public or private sector.

Challenges

There are four key challenges which were identified as common issues by seven or more AMS and Australia during the FGS. There are some central challenges for digital transformation and greater digital trade that are unique to each state and may not be shared by others in the region, but would still require significant attention and action in any potential future work programs.

Firstly, eight AMS, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Myanmar, Philippines, Thailand and Viet Nam, are primarily cash-based economies that operate with physical cash in a majority of transactions, including online purchases, and have not yet progressed to the prioritisation or role out of digital payments. This is partly because there is a greater need for trust and market confidence in financial and regulatory institutions, and partly because of limited availability of online payment platforms that support cross-currency payments. This transition to ‘card-based’ economies also provides great opportunities for innovation and development of new products and services.

Secondly, there is currently a lack of technical digital expertise in a number of states in the region. The reduced technical knowledge prevents NSBs from participating in international standardisation, as they are unable to contribute substantial knowledge, and also prevents states from leading and contributing to international work on technological developments. One Cambodian stakeholder articulated through the Survey, that their organisation does not currently employ enough individuals that possess adequate digital knowledge to set up information sharing programs to educate others.

The other most common challenges include consistent cybersecurity threats, which are costly on business resources and can be highly damaging to business operations if cybercrime attacks are successful. Similarly, the management of data security and integrity is a primary challenge for AMS and Australia, who need greater education and implementation of international standards for support, and also must align their approaches across the region in order to encourage interoperability and data sharing for common economic benefit.

Australian stakeholders at the Sydney Focus Group Session, 23 May 2018


Opportunities

The opportunities that arise through greater digitisation and increased digital trade in the region, differ immensely across the AMS and Australia. For example, increased digitisation of national and neighbouring markets presents states such as Singapore with increased investment opportunities for their fast-paced and fast moving markets. The Philippines, as the largest business process outsourcing (BPO) service provider in the world, has the opportunity to implement international standards and integrate their systems into even more global value chains, driving international investment into their domestic economy. Australia, which does not have the geopolitical advantages of some AMS, can use digital to bridge its geographic limitations by providing goods and services through online media.

There are some commonalities in the prospective opportunities for the region though; digital as an enabler to bridge the rural-urban divide; education and awareness building to benefit all supply chains and economic development; and opportunities for AMS and Aus-tralia to share knowledge and experiences in order to enable collective regional develop-ment. The rural-urban divide is a common issue across the ASEAN region, with disparity and socioeconomic differences as a core issue that many Governments seek to address.

Digital trade solutions could provide a potential solution to helping address this problem. Thailand and Lao PDR are providing an increasing number of Government services online, making them available to more and more of the population, and Myanmar is using digital tools to provide education programs and work placement opportunities to students throughout the country. The digitisation of the agricultural industry is also critical for the rural areas of the ASEAN-Australia region. As an industry, agriculture provides a significant source of employment for many AMS and Australia, and also produces highly traded commodities in the region. Digitisation could streamline business processes, reduce transaction costs and provide a mechanism to reduce the income divide between rural and urban areas across the ASEAN-Australia region.

Most importantly, there is a fantastic opportunity for AMS and Australia to share their knowledge, experiences and learnings with digital tools and technologies in all sectors of the economy to expand the knowledge base region-wide, support greater engagement in international standards processes, and support more collective regional growth. Business in Brunei Darussalam is open and willing to accept advice and information from across the region in areas such as data privacy to enable SMEs to become more internationally competitive, aligned with consumer expectations and also reduce potential costs required to trial systems. Further, a number of AMS, such as the LDCs, have the potential to digitally leapfrog more developed states by implementing the most modern and efficient digital technologies to strengthen many sectors of their economy.

Philippine Focus Group Session, 11 May 2018


Potential Future ASEAN-Australian Cooperation

Potential Priority AreasGiven the complexity of the digital economy and the vast array of international digital standards, determining the priorities in any one country is not straightforward, let alone across a region. The above findings provide an initial basis from which to coordinate future AMS and Australian activities in the realm of digital standards. There are four primary themes that have emerged throughout this research as essential to the success of the digital economy:

• Data Including data management, data privacy and data integrity to facilitate cross-border data flow

• E-transactions Including cards, devices and blockchain and other emerging technologies

• Logistics Including IT management, governance and interoperability

• Trust Including cybersecurity, security techniques and trust in primary institutions which support the digital economy

These findings are reinforced by the key components which are identified in the ASEAN ICT Masterplan as supporting accessibility, deploying next generation ICT, supporting a single regional market or helping to securing a digital marketplace and safe online communities.

International standardisation in these areas is covered by the 22 ISO/IEC JTC 1 Sub-Committees which are outlined in Figure 3. Figure 11 below also indicates the participation level of each AMS and Australia. Participating Members (indicated by a blue P) of TC’s are expected to attend each international SC meeting and actively contribute strategic and detailed knowledge to the development of International Standards that are developed and monitored under each specific Sub-Committee. The input is given on behalf of the entire member’s stakeholder community, not simply just from an individual or organisational perspective. It is optional for Observer members (indicated by green O) to attend international meetings and they are not required to provide expert advice and input into the standards development process, but can choose to do so if pertinent.

The key technical committees covering the priority areas, as identified by stakeholders participating in the JTC 1 Technical Committee, are indicated in blue in Figure 11. A brief description of the scope of work facilitated by the Sub-Committees is provided below. Participation in these particular technical committees varies across the region. The following Sub-Committees all contribute to developing International Standards that support the building of trust and market confidence, mitigating risk for business and the consumer, enabling data and information flows to cross international business borders and combatting cybersecurity issues. These identified standards areas, coupled with International Standards in other sectors of the economy, enable growth that can assist in building the necessary digital trade foundational infrastructure. The below committees have been separated into the four primary themes of digital trade.


ISO/IEC JTC 1 Sub-Committees

DATA

ISO/IEC JTC 1/SC 38: Cloud computing and distributed platformsThe effective management of cloud computing and distributed platforms is essential for cross border data flows as it impacts data sovereignty, national security and privacy. The standards in this field of technology are increasing in relevance as the uptake of cloud computing technologies continues to grow, particularly across ASEAN and Australia. Foundational standards for cross border data flows include: ISO/IEC 19944 Information technology — Cloud computing — Cloud services and devices: Data flow, data categories and data use and ISO/IEC 17789 Reference Architecture.

E-TRANSACTIONS

ISO/IEC JTC 1/SC 17: Cards and security devices for personal identificationCards and security devices for personal identification are considered fundamental to allow for electronic transactions to take place. Within the context of ASEAN, this is particularly important in relation to moving cash based economies into the digital age. It is also key to allowing consumers to order products over the internet and trust the institutions which allow these transactions to occur.

LOGISTICS

ISO/IEC JTC 1/SC 25: Interconnection of information technology equipmentStandardization in the field of interoperability of IT equipment for commercial and residential purposes includes elements such as interfaces, architecture, networks, storage systems etc. This field of standard development is critical to the ASEAN-Australia economy because it enables users, from a consumer and business perspective, to communicate across multiple facets of IT over international borders.

ISO/IEC JTC 1/SC 40: IT service management and IT governanceSub-Committee 40 develops standards for IT service management and IT governance, including risk management, and IT service operations. This committee is responsible for the maintenance of the ISO/IEC 38500 series which addresses cooperate governance of IT, critical for business development and trust building in ASEAN and Australia. It also covered IT enabled services, such as standards for Business Process Outsourcing (BPO), a significant economic contributor in the region.

TRUST

ISO/IEC JTC 1/SC 27: IT security techniquesThis committee develops critical standards for building trust and assuring security and privacy in the IT space, particularly for supporting cross border transactions and enabling digital trade. The standards outline general methods, management systems requirements, techniques and guidelines for information security and privacy. This committee is responsible for the maintenance of the ISO/IEC 27000 series Information Technology – Security Techniques. This suite of standards has been identified as essential for building business, consumer and government confidence and trust in digital services throughout the region.


Support all four themes:

ISO/IEC JTC 1/SC 41: Internet of things and related technologiesThe standards developed by this committee primarily support interoperability between a network of devices that are imbedded with electronics, software centres and connectivity. It enables devices to connect and exchange data to create opportunities for more integration, improve efficiencies and drive economies of scale. It has a range of applications across the consumer and commercial world and creates new market opportunities as technology develops and standards support growing innovation.


Potential Cooperation Activities• The Digital Trade Standards Workshop provides an opportunity to facilitate a

discussion that may enable the validation of priority ISO and IEC digital technical committees, including the crucial international digital standards that fall within their scope.

• The Digital Trade Standards Workshop could be used to discuss and identify the components for inclusion in a framework for future ASEAN-Australia cooperation. Some areas that might be considered include:

– Potential methods of cooperation between AMS and Australia to support greater participation, adoption and use of international digital standards.

– Potential cooperative activities that align with the future ASEAN E-commerce Agreement.

• Which governance and overarching bodies would provide the greatest support and coordination for future activities between ASEAN and Australia?

• How can the ISO and IEC membership status of AMS be addressed in order to enable some member states to increase their participation?

– What resourcing is required to support an increase in participation and how would it be supported?

– How can AMS and Australia leverage the ISO support program through their rolling Action Plan for Developing Countries?

– How can AMS and Australia leverage the IEC Affiliate Country Program, targeting newly industrialised countries?

– How can AMS and Australia be further incorporated into ISO/IEC JTC 1 activities through their Outreach Plan?

• A potentially detailed and beneficial exercise would include the identification and mapping of key national and international standards in agreed areas of digital priority.

– How could this work lead into determination of which international standards are most advantageous and should be prioritised for adoption?

– This work could also be potentially mirrored in committees such as Blockchain and distributed ledger technologies, Health informatics and Financial services.

• This Initiative has recognised the potential strategic opportunities that arise and are solidified through knowledge sharing activities. How can AMS and Australia establish a platform and processes for future sharing of case studies, experiences and lessons learned from their own domestic context to share with the rest of the region?

– How can best practices be highlighted and learned from?– How can fast-tracked growth be enabled through information sharing and

knowledge transfer?• Future cooperation projects and opportunities for standards alignment could be

considered in particular areas of cross-cutting interest, such as smart cities and cybersecurity.

• How could future cooperation activities include other elements of the National Quality Infrastructure?

– What is the opportunity cost for not harmonizing digital standards, not creating technical alignment and/or regulatory coherence?

• How could AMS and Australia work closely with NSBs to effectively roll out national development plans, E-commerce or digital strategies, by educating and promoting the significance of digitisation?


Figure 11: AMS and Australian participation levels in JTC 1 Committees

Committee Designation,CommitteeTitle Aus

tral

ia (S

A)

Bru

nei D

arus

sala

m (A

BC

I)

Cam

bodi

a (IS

C)

Indo

nesi

a (B

SN

)

Lao

PD

R (D

OS

M)

Mal

aysi

a (D

SM

)

Mya

nmar

(DR

I)

Phi

lippi

nes

(BP

S)

Sin

gapo

re (E

SG

)

Thai

land

(TIS

I)

Vie

t N

am (S

TAM

EQ

)

ISO/IEC JTC 1,InformationTechnology P O P O P O O

ISO/IEC JTC 1/SC 2,Codedcharactersets P O O O

ISO/IEC JTC 1/SC 6,Telecommunicationsandinformationexchangebetweensystems

O O O O O

ISO/IEC JTC 1/SC 7,Softwareandsystemsengineering P O P O P

ISO/IEC JTC 1/SC 17,Cardsandsecuritydevicesforpersonalidentification

P O P P O O

ISO/IEC JTC 1/SC 22,Programminglanguages,theirenvironmentsandsystemsoftwareinterfaces

O O O

ISO/IEC JTC 1/SC 23,DigitallyRecordedMediaforInformationInterchangeandStorage

O O

ISO/IEC JTC 1/SC 24,Computergraphics,imageprocessingandenvironmentaldatarepresentation

P O O O

ISO/IEC JTC 1/SC 25,Interconnectionofinformationtechnologyequipment

P O O O P

ISO/IEC JTC 1/SC 27,ITSecuritytechniques P P P P P O

ISO/IEC JTC 1/SC 28,Officeequipment O P O

ISO/IEC JTC 1/SC 29,Codingofaudio,picture,multimediaandhypermediainformation

P O O P

ISO/IEC JTC 1/SC 31,Automaticidentificationanddatacapturetechniques

O O O O O

ISO/IEC JTC 1/SC 32,Datamanagementandinterchange O

ISO/IEC JTC 1/SC 34,Documentdescriptionandprocessinglanguages

O O O

ISO/IEC JTC 1/SC 35,Userinterfaces O

ISO/IEC JTC 1/SC 36,Informationtechnologyforlearning,educationandtraining

P O

ISO/IEC JTC 1/SC 37,Biometrics P O P P O

ISO/IEC JTC 1/SC 38,CloudComputingandDistributedPlatforms

P P

ISO/IEC JTC 1/SC 39,SustainabilityforandbyInformationTechnology

O P

ISO/IEC JTC 1/SC 40,ITServiceManagementandITGovernance

P P O

ISO/IEC JTC 1/SC 41,InternetofThingsandrelatedtechnologies

P P P

ISO/IEC JTC 1/SC 42,Artificialintelligence O

Key

Technicalcommitteecoversapriorityarea

P =Participatingmember

O =Observingmember


About Standards Australia

Founded in 1922, Standards Australia is an independent, not-for-profit organisation, recognised by the Commonwealth Government as the peak non-government Standards development body in Australia. It is charged by the Commonwealth Government to meet Australia’s need for contemporary, internationally-aligned Standards and related services. The work of Standards Australia enhances the nation’s economic efficiency, international competitiveness, and contributes to community demand for a safe and sustainable environment.

www.standards.org.au

Paper Contributors

This collaborative Issues Paper was led by the Standards Australia International Engagement Team, with strategic contributions from the ASEAN Member States through a Point of Contact Group.

Lucy ChalmersInternational Engagement ManagerStandards Australia T (+61 2) 9237 6115E [email protected]

Lucy Chalmers joined Standards Australia in early 2016 and has performed various roles within the business, including two years with the International Engagement Team. As an International Engagement Manager, Lucy is responsible for key international engagement priorities, project management and contributing to Standards Australia’s international engagement strategy. Lucy has previously worked in website management and with the International Development Organisation, ChildFund Australia.

Lucy holds a Bachelor of International and Global Studies from the University of Sydney and is in the final semester of completing a Masters of International Relations with Macquarie University. She resides in Sydney.

Damian Fisher Senior International Development Manager Standards AustraliaT (+ 61 2) 9237 6098E [email protected]

Damian Fisher is a senior member of Australia’s National Standards Body, Standards Australia. He is responsible for coordinating and managing international standards work and leads the organisation’s capacity building and institutional strengthening program. Mr Fisher has also led a number of projects sponsored by APEC’s Sub-Committee on Standards and Conformance (SCSC) and AANZFTA Sub-Committee on Standards, Technical Regulations and Conformity Assessment Procedures. He was a member of ISO’s Developing Countries (DEVCO) Chairs Advisory Group and is currently a co-convenor on one of its Working Groups. He has more than 28 years’ experience in international business and is a former senior Australian trade diplomat. His postings included appointment as Consul General and Senior Trade Commissioner based in Turkey. Mr Fisher also served with the Australian Embassy in Riyadh, Kingdom of Saudi Arabia where he was accredited as Counsellor (Commercial) and Senior Trade Commissioner for Saudi Arabia, Kuwait and Bahrain. He is also a co-author of a number of publications including a book, Export Best Practice: Commercial and Legal Aspects, The Federation Press, Sydney. Mr Fisher is based in Sydney.

https://www.standards.org.au


Point of Contact Group

Advice, comments, informative content and strategic direction was received from the Point of Contact Group in the development of this ASEAN-Australia Issues Paper on Digital Trade.

Brunei Darussalam

• Mr Pg Adrian Bin Pg Salleh Ab Rahaman, Head of Digital Nation, Ministry of Energy, Manpower & Industry

• Mr Nazri Ali, Project Officer, National Standards Centre, Ministry of Energy, Manpower & Industry

• Pg Suridah Pg Hj Sulaiman, Head of National Standards Centre, Ministry of Energy, Manpower & Industry

Cambodia

• H.E. Chan Borin, Director General, Institute of Standards of Cambodia

• Ms Chin Kesar, Director for standards Development, Training and Consultancy, Institute of Standards of Cambodia

Indonesia

• Ms Konny Sagala, Head of Center for Cooperation on Standardization, Badan Standardisasi Nasional

Lao PDR

• Ms Nisith Khammounheuang, Deputy Director General, Department of Standardization and Metrology

• Ms Latda Phimmachack, Division of Standard, Department of Standardization and Metrology

Malaysia

• Ms Nur Hidayah Binti Ayub Kamarudin, Assistant Director, Standardisation Division, Department of Standards Malaysia

• Mr Ridzwan Kasim, Senior Director of Standardisation Division, Department of Standards Malaysia

Myanmar

• Dr. Zar Ni Aung, Director and Head, National Standards and Quality Department, Department of Research and Innovation

• Dr War War Moe, Head of Standards Development Division, National Standards and Quality Department, Department of Research and Innovation

Philippines

• Engr. James E. Empeño, Director-in-Charge, Bureau of Philippine Standards

• Ms Marie Camille B. Castillo, Standards Mainstreaming Division, Bureau of Philippine Standards


Singapore

• Ms Cindy Ngiam, Head, Strategy & International Policy (Policy & Promotion Division), Enterprise Singapore

• Ms Yen Yee Lim, Development Partner, Strategy and International Policy, Enterprise Singapore

Thailand

• Mr Chaiyavat Tangkrock-Olan, Director, International Affairs Division, Thai Industrial Standards Institute

• Ms Nathinee Chantajaru, International Relations Division, Thai Industrial Standards Institute

Viet Nam

• Ms Vu Thi Tu Quyen, Deputy Director, International Cooperation Department, Directorate for Standards, Metrology and Quality

• Ms Truong Hanh Hoa, Official, International Cooperation Department, Directorate for Standards, Metrology and Quality

ASEAN Secretariat

• Mr Isagani C. Erna, Assistant Director, Standards and Conformance Division, Market Integration Directorate, ASEAN Economic Community Department, ASEAN Secretariat


Terms

Accreditation: The procedure by which an authoritative body gives formal recognition that an organisation or person is competent to carry out a certain task, such as certification.

Certification: The provision by an independent body of written assurance (a certificate) that the product, service or system in question meets specific requirements.

Conformity Assessment: A set of processes that show that a certain product, service or system meets the requirements of a standard or technical regulation. Conformity Assessment comprises testing, inspection and certification of products or services.

Conformity Assessment Body: A body that performs conformity assessment services and that can be the object of accreditation (also referred to as a certification body).

Conformity Assessment Procedure: Any procedure used, directly or indirectly, to determine that a technical regulation or standard is fulfilled, including sampling, testing, inspection, evaluation, verification, monitoring, auditing, assurance of conformity, accreditation, registration or approval used for such a purpose, but does not mean an approval procedure.

Digital Economy : A term used to describe all those economic processes, transactions, interactions and activities that are based on digital technologies.10

Digital Trade: Refers to transactions in products and services delivered via the Internet and internet-based technologies.11

Identical Adoption: An adoption of a standard that is identical in technical content, structure and wording of the original international, regional or national standard. Identical adoptions are sometimes referred to as Direct Text Adoptions. The document can contain certain defined minimal editorial changes.

Equivalence: The acceptance that different standards or technical regulations on the same subject fulfil common objectives. The WTO TBT and SPS Agreements require member countries to accept the measures of other countries as equivalent where they can demonstrate that the measures achieve the same outcomes.

Free Trade Agreement: An FTA is an agreement between two or more countries (Parties) to lower the barriers to trade between their economies. FTA’s may include a number of provisions and chapters on goods, services, investment, rules of origin, government procurement, electronic commerce and technical barriers to trade.

Harmonisation: Harmonisation is achieved when two or more states adopt the same standards for use in their economies. The objective is to promote the use of international standards and facilitate trade by harmonising TBT measures of different countries on as wide a basis as possible.

Modified Adoption: An adoption of a standard that contains technical deviations (changes introduced in the adopting international, regional or national standard), which are clearly identified and explained. The changes to the structure of the standard must be limited so that an easy comparison is possible between the modified standard and the original international, regional or national standard.

10 Techopedia, ‘What does Digital Economy Mean?’, https://www.techopedia.com/definition/32989/digital-economy

11 Adopted from Digital Trade in the U.S. and Global Economies, Part 1, Investigation No. 332-531, U.S. International Trade Commission, Washington, July 2013, p.i

https://www.techopedia.com/definition/32989/digital-economy



National Quality Infrastructure: The National Quality Infrastructure (NQI) is the institutional framework that establishes and implements the practice of standardisation, including conformity assessment services, metrology, and accreditation

National Standards Body: Organisations that bring together public and private stakeholders with responsibility to develop National Standards. National Standards Bodies (NSB) also participate in international standards development processes to provide input on behalf of the country they represent. These bodies can be either public-sector entities or non-profit private organisations.

Standard: A document approved by a recognised body that provides, for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods, with which compliance is not mandatory. A standard may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.

Technical Regulation: A document that lays down product characteristics or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory. A technical regulation may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method. It should be noted that a standard that is called up in legislation is a technical regulation.


Resources

AT Kearney, ‘The ASEAN Digital Revolution’ 2013, pp. 1, accessed April 2018, available online at: https://www.atkearney.com/documents/10192/7567195/ASEAN+Digital+Revolution.pdf/86c51659-c7fb-4bc5-b6e1-22be3d801ad2

ASEAN ICT Masterplan 2020, accessed May 2018, available online at: http://www.asean.org/storage/images/2015/November/ICT/15b%20--%20AIM%202020_Publication_Final.pdf

Department of Foreign Affairs and Trade Australia, ‘Association of Southeast Asian Nations’ available online at: http://dfat.gov.au/international-relations/regional-architecture/asean/Pages/association-of-southeast-asian-nations-asean.aspx

Department of Foreign Affairs and Trade, ‘Australia’ and ‘ASEAN-10’ Fact Sheets, available at: http://dfat.gov.au/trade/resources/Documents/aust.pdf, http://dfat.gov.au/trade/resources/Documents/asean.pdf, accessed on 13 April 2018.

International Organization for Standardization, ‘ISO: a global network of national standards bodies’, available at https://www.iso.org/members.html

Plan of Action to Implement the ASEAN-Australia Strategic Partnership, ASEAN-Australia Plan Of Action, http://asean.org/storage/images/2015/November/ASEAN-Australia/ASEAN-Australia%20Strategic%20Partnership%20POA%202015-2019-Final.pdf

Techopedia, ‘What does Digital Economy Mean?’, accessed on 12 June 2018, https://www.techopedia.com/definition/32989/digital-economy

United States International Trade Commission, 2013, ‘Digital Trade in the U.S. and Global Economies, Part 1,’ Washington, available at: https://www.usitc.gov/publications/332/pub4415.pdf

World Bank, 2013, ‘The Innovation Policy Platform’, accessed on 24 May 2018, available at: https://innovationpolicyplatform.org/sites/default/files/rdf_imported_documents/TheNationalQualityInfrastructure.pdf








http://dfat.gov.au/trade/resources/Documents/aust.pdf



https://www.iso.org/members.html





https://www.usitc.gov/publications/332/pub4415.pdf

https://www.usitc.gov/publications/332/pub4415.pdf




Myanmar

Thailand

Cambodia

Lao PDR

Viet Nam

Indonesia

Brunei Darussalam

Philippines

Singapore

Malaysia


Philippines

Australia


standards.org.au

ASEAN Australia Digital Trade Issues ... - Standards Australia

Documents

Transcript of ASEAN Australia Digital Trade Issues ... - Standards Australia